Spirit Furloughing

jhugz said:
As much as I feel for the Spirit peeps, I just can’t feel good about the US Taxpayer shipping over 500 million for the Spirit Management team to light on fire.

On the other hand, it’s still a better use of tax payer dollars then giving it to Daddy Raytheon to blow up brown people across the globe.
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This buys them at most, a quarter of operating expenses. They have failed twice to turn it around and don’t seem to have any answers.
 
luke3 said:
I'm gonna be called a communist for this, but if this is the new trend, with possibility more airlines to follow, we should just re-regulate the industry like in the CAB days.
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This. This right here. The current status quo is that they’re a business whenever there’s an attempt to regulate their usage of taxpayer-funded infrastructure to make a profit and they’re essential infrastructure whenever they’re losing money from their poor decisions. Either completely gloves off and they can pay for their own runways and controllers or they accept reasonable regulation.
 
JordanD said:
The right just calls everyone a communist anyway so does it even really matter anymore?
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They call everything socialism and then ignore the actual socialist things. I loved my time at spirit there but listened to so much “socialism” fear mongering and red hat kool aid and now it’s just fine and dandy to them. I don’t want them to fail at all but talk about hypocrisy.
 
Just kinda peeking at Spirit's latest 10-K, it looks like they have been losing ~$1.5bn to $2bn annually since 2024 on $3bn to $5bn revenue.


The president bankrupted a casino, you say? He must have amazing luck!

What do you mean, "not that way?"
 
B200 Hawk said:
They call everything socialism and then ignore the actual socialist things. I loved my time at spirit there but listened to so much “socialism” fear mongering and red hat kool aid and now it’s just fine and dandy to them. I don’t want them to fail at all but talk about hypocrisy.
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Far too many airline pilots hypocrites out there. Had a buddy from Pinnacle who went to Spirit. Anti-socialist views, how people are lazy, less social programs, etc. I bet he’s gonna silently be okay with this bailout. Weird how that works.
 
jhugz said:
As much as I feel for the Spirit peeps, I just can’t feel good about the US Taxpayer shipping over 500 million for the Spirit Management team to light on fire.

On the other hand, it’s still a better use of tax payer dollars then giving it to Daddy Raytheon to blow up brown people across the globe.
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The combination of the 2 gives Republicans the perfect slogan to campaign on this fall: "Ayatollah Khamenei is dead and Spirit Airlines is alive". 2026 definitely looks like it's shaping up to be a massive Republican wave year.
 
The check came through.
s5n8j6g_d.webp
 
This is where we are these days. We now get to define what is and what isn’t a handout.


It is a handout. With zero ability to pay it back. This simply kicks the can down the road to July at best.




[td width="369.828125px"]
Spirit Airlines Pilots Support Federal Relief Effort​
[/td]​
Today the Spirit Airlines pilots voiced their strong support for the Trump administration's proposed relief effort for Spirit Airlines.

“Federal relief is not a handout,” stated Capt. Ryan P. Muller, chair of the Spirit Airlines ALPA Master Executive Council. “It is a loan that will allow the airline to finish the work that is already well underway, and it is the right call for 14,000 workers, nearly 2,000 pilots, the families who depend on those paychecks, and the millions of passengers who rely on affordable air travel. Any government relief must protect Spirit employees to ensure we can competitively move forward.”
 
Straight from Spirit’s lawyer. Either this govt handout happens now or they go bust next week.




www.cnbc.com

Spirit Airlines lawyer says cash 'not going to last for very much longer,' but government rescue on the table

Spirit Airlines confirmed it is in talks with the Trump administration for a rescue package.
www.cnbc.com www.cnbc.com



Honest questions because this is above my paygrade…


The govt plan would then make them a 90% holding entity with first dibs if Spirit goes bust. So simple math, that means current bond holders only get 10% if the govt deal goes through.


Why would they want that? If you’re a current holder, wouldn’t you want to liquidate now and get first dibs to get money back? Getting dibs at 100% level is far better than getting 10% leftovers after thr fed govt. yes, no?
 
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Having been in this position before, I don't want anyone at Spirit to lose their job.

But this is • insanity.

www.cbsnews.com

White House mulls using Defense Production Act in Spirit Airlines takeover

President Trump is open to some type of federal action, several sources told CBS News, and he has said publicly he'd "do it to save the jobs."
www.cbsnews.com www.cbsnews.com

Youngstown Sheet and Tube was decided on similar grounds. I probably just gave every lawyer on this forum a seizure by bringing it up, but it applies here.

Jackson's opinion took a similarly flexible approach to the issue by eschewing any fixed boundaries between the powers of Congress and the President. His framework would influence future Supreme Court cases on the president's powers and the relation between Congress and the presidency.[5] He divided Presidential authority towards Congress into three categories (in descending order of legitimacy):

"When the President acts pursuant to an express or implied authorization of Congress, his authority is at its maximum, for it includes all that he possesses in his own right plus all that Congress can delegate.”[6]

When the President acts "in absence of either a congressional grant or denial of authority, he can only rely upon his own independent powers, but there is a zone of twilight in which he and Congress may have concurrent authority, or in which its distribution is uncertain.”[7]

"When the President takes measures incompatible with the expressed or implied will of Congress, his power is at its lowest ebb." The Court can sustain his actions “only by disabling the Congress from acting upon the subject.”[8] A grant of such power would be "conclusive and preclusive."
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